Vastavam web: Goods and service tax, which is going to be implemented from July is expected to bring down the price of essential commodities in India. The Union government said that it has fixed the price for 1211 commodities which can be termed as essential for public in their daily life and the price will be minimized as much as possible.
With the conclusion of the first day of the 14th round of the GST Council’s meet, GST is heading closer to timely implementation across the country. The Council’s approval to over seven draft GST rules and fitment of over 1,211 commodities (with an exclusion of six items) in various tax slabs takes GST framework towards finality. With these announcements, India Inc now has sufficient information to realign its reporting systems and existing processes in line with GST requirements.
The broad categorization of the commodity universe suggests that most of the items would attract 12 or 18 per cent of GST. Around 60 per cent of the items have been indicated to fall within these two categories with only around 19 per cent of the items are indicated to be pushed towards the higher rate of 28 percent or more (considering cess would apply on certain items). In line with earlier indications, food grain and milk have been exempted from GST while essential commodities such as edible oil, sugar and tea are pegged at five per cent.